‘Tesla for circularity’ | Nornorm raises €110m to drive global aspirations
“The same way Tesla’s electrification of cars has influenced the motor industry, we want to be the catalyst of change to circularity in the workspace industry,” CEO Anders Jepsen said following a nine-figure funding round.
Used by companies like flex office giant IWG, Nornorm is a subscription-based furnishing service seeking to move businesses away from single-use furniture.
The Copenhagen-based company raised €110m in its latest funding round, led by growth equity investment firm Verdane, alongside Inter Ikea Group and Philian AB.
Nornorm aims to improve flexibility and cost efficiency for landlords and business owners, while helping its customers reduce their environmental impact through a model that it says extends the lifecycle of office furniture three times.
How it works
Nornorm puts together personalised office designs for its customers, installs the furniture and provides an app to manage preferences such as desk height.
The business is built on flexibility. Users can change their preferences and scale up or scale down their office fit outs as needed. If a client cancels their subscription, Nornorm disassembles and collects the furniture, which it then repairs and uses in other spaces.
Anders Jepsen, co-founder and CEO of the company, called the model “the Netflix of furniture” in an interview with PlaceTech earlier this year.
‘Bigger impact than the internet revolution’
Nornorm will use the funding round as a launchpad for its global expansion. Operating in 10 countries across Europe, the company recently entered the UK market with plans to expand to the US in 2023.
Jonas Kjellberg, co-founder and chairman of the board at Nornorm, said: “To grow and adapt to the future, all companies need to rethink and fully adopt circular models and move away from the linear business model. This is just the beginning of the movement. All industries will be affected, and to survive and thrive business leaders have to be prepared to change.
“The circular movement will have a bigger impact on industries than the internet revolution.”
Co-founded with Inter Ikea Development in 2020, Nornom has sold more than 200,000 sq m (2.2 sq ft) of office furniture subscriptions. Customers include Volvo, Electrolux and Netflix.
Erik Osmundsen, partner at Verdane, said: “A systemic shift from single use to circular is needed across the economy. This is a key investment thesis for Verdane.
“Nornorm aims to extend the lifetime of office furniture from six years to 20 or even 30 years. Given most office furniture still ends up in a landfill, this would be a significant step change for the circular economy.”
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